Series creator Michel Ancel has flat-out talked about the sequel and some of his plans for it. More importantly, Ubisoft president Yves Guillemot himself debuted the game to the world's gaming press at last year's international Ubidays event -- which was also streamed live worldwide via the web, no less. (Oh, and Guillemot also spoke more about it later, as well.)

I would say this confirms it is still in planning stages though, and could be canceled if no firm development cycle can be started.

__________________I gots one of them high powered gaming computers with an EVGA GTX 480 video thingy and a Q9550 processing device and also one of them Windows 7 64 operating programs with 4GB of some Corsair 1033 DDR2 ram.

It has not been dropped. The man they interviewed is the President of Ubisoft US, the game is developed at Ubisofts French Studios I believe he really wouldn't have much connection with the games development.

It has not been dropped. The man they interviewed is the President of Ubisoft US, the game is developed at Ubisofts French Studios I believe he really wouldn't have much connection with the games development.